While AEG may have a book value that is $13 [inclding goodwill along with a number of other wonderful accounting tricks], the stock is now down to $4.78. This stock will require a great deal of patience because experience over the last several years has shown the difficulties faced by this company are long lived. That said, AEG management is starting to move in the right direction in terms of addressing its managerial challenges.
there isn't anyone on WALL st old enough to understand ...INTEREST RATES DON"T MATTER IN INSURANCE !!!!!...........young educated but inexperience traders really believe hedging a ins liability can ONLY BE DONE IN GOV BONDS OF THAT customers nation ...imo
We will have to see whether interest rates matter or not -- remember the late 70's when there was so much disintermediation in the insurance industry? Well if interest rates merely go up to the historical mean of 5%, those lovely mortgages will reprice and not in an upward direction. In this environment I want to be a borrow and let the insurers take all the risk particularly with inflation coming back sometime in the not too distant future.